Paxos has launched its Global Dollar (USDG) stablecoin on the Arbitrum network, bringing the asset into the network’s ecosystem after joining the Global Dollar Network. The launch comes as Arbitrum seeks to expand its use cases beyond applications tied solely to cryptocurrencies by building infrastructure suited to financial and tokenized assets on-chain.

According to the announcement, USDG is now natively issued on Arbitrum One, with direct integrations across several decentralized finance protocols, including Fluid, Morpho, GMX, and Maple. Kraken will also support deposits and withdrawals, while Stargate will facilitate transfers between Arbitrum and other blockchain networks.

This expansion gives USDG a broader presence in Arbitrum’s DeFi ecosystem, potentially making it easier for users to access greater liquidity, more diverse use cases, and competitive fees on the Layer 2 network. Its presence across multiple protocols also opens the door to its use in lending, trading, and liquidity provision, rather than remaining merely a stable asset for holding value.

Alongside the launch, a proposal was submitted to ArbitrumDAO to make USDG’s growth a strategic goal for the network, adding 100 million ARB to an incentives program aimed at increasing adoption and liquidity. The proposal also calls for using Arbitrum treasury assets to support USDG liquidity, while allowing companies that integrate it to receive support from the Arbitrum Foundation.

As a partner in the Global Dollar Network, Arbitrum will receive a share of the rewards generated by USDG activity on the network, with the proceeds directed toward supporting adoption and ecosystem development. This model links stablecoin usage to incentives for network activity, potentially encouraging greater participation from both users and developers.

Data from the Arbitrum Foundation indicates that around $4 billion in stablecoins is currently held on Arbitrum. USDG is the seventh-largest stablecoin by market capitalization, with approximately $3.09 billion in circulation, according to DeFiLlama data. Most of its supply is currently concentrated on X Layer, Robinhood Chain, and Solana.

This development comes as Arbitrum continues to expand in the tokenized asset market, amid growing interest in infrastructure capable of supporting traditional and digital assets on-chain. In this context, the network is among those positioned to benefit as more assets move to blockchain environments, particularly as demand grows for continuous trading, lending markets, and perpetual futures.

#DeFi #العملات_المستقرة $USDG $ARB